FHA stand for “Federal Housing Authority”, a governmental agency established in 1934 to improve housing standards and promote home ownership. The FHA insures your loan which makes this type of loan more attractive to your lender, and, in turn, your lender may offer you better terms.

About FHA Loans*:

3.5% minimum down payment

1-4 unit residential properties

Higher debt to income ratios may be allowed (29/41 DTI ratios; may exceed under certain circumstances)